WASHINGTON D.C. — A federal mandate to eliminate trans fat in oil used in processed foods should not have a negative financial impact on soybean growers. In fact, the switch could bring greater returns to farmers who choose to grow the different type of soybeans needed to produce a more artery-friendly, stable oil without partial hydrogenation (PHO).

The U.S. Food and Drug Administration (FDA) rescinded the generally regarded as safe designation, or GRSD, for partially hydrogenated oil and established a three-year time period for the food industry to eliminate most uses for PHOs. The decision was applauded by groups like the American Soybean Assoc. (ASA), which believes the compliance period allows the U.S. soybean industry to ramp up its production of high-oleic soybeans.

The FDA since late in 2013 had already been moving toward eliminating trans fat for use in human consumption for several years, before issuing this recent mandate. High-oleic soybeans will be used to make the oil that will replace the estimated 2 million-2.5 million pounds of PHOs used annually in the marketplace.

Through genetic engineering, high-oleic oil does not contain the artery-clogging trans fat contained in PHOs and is low in saturated fat, said Wade Cowan, president of the ASA and a Texas soybean grower. "ASA absolutely echoes the commitment from both government and the food industry to better public health through nutrition," said Cowan, who pointed to the 70 percent reduction already in trans fat consumption since 2003.

Traditional soybean farmers don’t necessarily have to make the switch, because the FDA also decided to allow for the continued use of PHOs in animal food products, declaring them safe for animal consumption. That decision should preserve the market size for traditional soybeans because of the amount of growers needed for switching over to high-oleic soybean production, said Corinne Alexander, a professor in the Department of Agricultural Economics at Purdue University. In fact, the high-oleic soybeans could bring higher profit margins because they’ll be viewed as a specialty item.

These soybeans must be certified to guarantee they are not traditional soybeans when sold to buyers, something that also can drive up prices. Alexander also said producers of high-oleic beans will not go to the local elevator to sell their grains as traditional soybean growers now do.

Instead, growers under a contract will supply the beans directly to a major buyer that has its own facility to store and crush soybeans for drawing out the oil that will be sent to the food industry. "It opens and expands the opportunity for farmers to do contracted soybeans where they can earn a premium for doing the extra management and work of planting an identity-preserved crop," she said.

Chris Hurt, also a Purdue ag economist, said other so-called "healthier" oils have been developed over the years. But the kind derived from high-oleic soybeans are both low in saturated fats and have the stability in high temperatures needed by food companies to make their products.

For stability, traditional soybean oil must undergo hydrogenation, the process of bubbling the oil with hydrogen gas, and through a chemical reaction the oil becomes more of a solid than a liquid. Hurt said the switch should go smoothly because of the high percentage of trans fats already taken out of the food system in the past decade or so. "The biggest impact has already occurred. The next impact is the small one of reducing those trans fats," he said.

Farmers interested in growing high-oleic beans are advised to contact their local seed or processing representative, or visit the United Soybean Board’s http://soyinnovation.com

Cowan said the timeframe allows food makers to continue using partially hydrogenated oil until the building blocks are in place to meet the upcoming demand for high-oleic oil, without having to turn to palm or some other competing oil that also has a high fat content or is detrimental to the environment.